Property returns halve on softer market

The office market has seen vacancy rates rising due to over supply. PIC: KAGISO ONKATSWITSE
The office market has seen vacancy rates rising due to over supply. PIC: KAGISO ONKATSWITSE

Total returns in the investment property sector halved to 11.5 percent in 2014 down from 21.5 percent in 2013 on the back of a weaker market.

According to the IPD Annual Property Consultative Index released yesterday, the total return was underpinned by a relatively stable income return of 9.4 percent while capital growth slowed significantly to 2.0 percent from 10.2 percent the year before.

Total returns represent and aggregation of  income plus capital growth with the former reflecting increase in rentals while the latter denotes revaluations of properties.  

Editor's Comment
Depression is real; let's take care of our mental health

It is not uncommon in this part of the world for parents to actually punish their children when they show signs of depression associating it with issues of indiscipline, and as a result, the poor child will be lashed or given some kind of punishment. We have had many suicide cases in the country and sadly some of the cases included children and young adults. We need to start looking into issues of mental health with the seriousness it...

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